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Overview

8.0 Credits
ONLINE

Effectively and efficiently complying with the various auditing standards and professional requirements in financial statement audits of non-public entities is a challenge, particularly when dealing with the unique engagement issues that an audit of smaller entities presents.   The objective of this course is to provide best practices for critical aspects of audits of smaller entities.

Objectives

  • Describe how an external accountant’s responsibilities vary with the nature of the service being provided, including non-attest services, compilations, reviews and audits 
  • Explain the inter-relationship of all the elements in properly evaluating and responding to audit risk, including overall financial statement and relevant assertion level risks
  • Discuss opportunities for altering the nature, timing and extent of audit procedures commensurate with assessed risk of material misstatement

    • Major Topics

    • Clarifying the most significant differences in responsibilities related to the various scopes of attest services that public accountants provide, including tips for avoiding misunderstandings with client management and those charged with governance. 
    • Outlining the pros and cons of “stepping down” in scope of services and resulting report from an audit to a review or compilation from both the auditor’s and the client’s perspective. 
    • Tips for justifying the rationale and basis for independence conclusions when both attest and non-attest services (like bookkeeping or drafting financial statements) are provided for audit clients, as well as evaluating deficiencies in internal controls that may need to be communicated to the client as a result.  
    • Tailoring the standard engagement letter when public accountants provide clients with both attest and non-attest services.
    • Properly performing and documenting the required risk assessment procedures, including how the various risk assessment activities build upon each other to support ultimate conclusions regarding risks of material misstatement.
    • Providing factors to consider during required engagement team discussions, including real-life examples of potential identified risks and the potential impact on the detailed audit plan.
    • Clarifying how the key components of internal controls “fit together” in a “top-down” approach to designing “key controls” over reliable financial reporting to avoid material weaknesses in design of internal control.   
    • Providing real-life, practical examples of documenting the identification and evaluation of the design and implementation of key internal controls for typical significant classes of transactions within smaller non-public entities.    
    • Describing specific possible alterations to a typical detailed audit plan for a smaller non-public entity based on various risk of material misstatement assessments.  
    • Describing typical quality control deficiencies related to documenting the nature, timing and extent of further audit procedures and conclusions.  
    • Typical engagement wrap-up issues and concerns.

    Designed For

    Professionals interested in gaining practical insights into how to prevent common financial statement audit deficiencies

    Prerequisite

    None

    Advanced Preparation

    None
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